Women Are Underinsured in Australia - And a Man Is Not a Financial Plan
4 Mar 2026 • General Knowledge
Women in Australia remain significantly underinsured when it comes to life insurance, income protection and disability cover. Despite increasing workforce participation and major financial contributors to households, women are far less likely than men to hold insurance that protects their financial independence.
Understanding why women are underinsured and why relying on a partner is not a financial plan is an important step in improving long-term financial security.
With International Women's Day highlighting gender equality and financial independence, the gap in financial protection between men and women remains one of the least discussed risks facing Australian households.
This Is the Part No One Likes to Say Out Loud
If you are a woman and you become seriously ill, research suggests you are significantly more likely to experience separation or divorce than a man with the same illness.
One well-known study examining brain cancer patients found that the strongest predictor of separation wasn't age, income or prognosis - it was whether the patient was female.
Another study found that women often continue doing the majority of housework even while they are sick, particularly if that was already the pattern before diagnosis.
Read that again.
Even when you're unwell, you may still be carrying the load.
Which raises an uncomfortable truth. If part of your financial plan is "my partner will take care of me", that's not really a plan. It's hope.
And hope doesn't pay the mortgage.
Women Are Massively Underinsured
Despite playing a central role in both household income and family care, women remain dramatically underinsured compared to men.
In Australia:
- 63% of women participate in the workforce, compared to 71% of men
- Yet only around one-third of women report having life insurance, compared with nearly half of men
This gap doesn't reflect lower need. In many households women contribute both paid income and the majority of unpaid work.
But when money gets tight, women are often the first to cut their own safety net. Insurance becomes something to revisit later. Until suddenly, you can't.
The Economic Value of Women's Work
Traditional conversations about life insurance tend to focus on protecting the income of the primary breadwinner. But that ignores the broader economic reality of how households actually function.
Women perform around 72% of unpaid work in Australia, including caring for children, ageing parents and family members with illness or disability.
The Value of Informal Care Report estimated it would have cost $77.9 billion in 2020 alone to replace unpaid carers with formal services.
That contribution rarely appears on a payslip. But it has real economic value. And when illness disrupts that contribution, the financial impact can affect an entire household.
Financial Protection Is About Independence
Life insurance and income protection aren't about expecting the worst, they're about recognising the value of your contribution.
They are about protecting your income, your contribution and your independence in a world that already expects women to cope, adapt and sacrifice, even when they are sick.
Because relying on someone else to carry you through a crisis is not a financial strategy. And a man is not a financial plan.
Frequently Asked Questions
Why are women underinsured in Australia? +
Women are significantly less likely than men to hold life insurance or income protection. This gap often occurs because women prioritise household expenses or other family needs ahead of their own financial protection, even though they contribute substantial income and unpaid work to households.
Do women need life insurance if they have a partner? +
Yes. A man is not a financial plan. Life insurance and income protection can provide financial support if illness or injury prevents you from working or managing household responsibilities.
What types of insurance are most important for women? +
Common types of financial protection include life insurance, income protection and disability cover such as total and permanent disability (TPD) insurance. These products can help replace lost income or support families financially if someone becomes seriously ill or unable to work.
Why is financial protection important even if you do unpaid work? +
Unpaid work such as childcare and caring responsibilities has significant economic value. If illness prevents someone from performing these roles, families may need to pay for replacement services such as childcare or care support.
How can women check if they have enough insurance? +
Many Australians have some cover through superannuation but it may not be sufficient. Using online tools such as insurance calculators or quote comparisons can help estimate how much cover may be appropriate for your circumstances.